IBS

Saudi Arabia's military expenditure amounted to 8.8% of GDP in 2005, according to the International Institute for Strategic Studies, a think-tank. America spent 4% of GDP, though its total was $495.3 billion, compared with the Desert Kingdom's $25.4 billion. Saudi Arabia has expensive tastes, buying military hardware, such as jet fighters, from its British and American allies. China spends less, at 1.4% of GDP, but it has the second-biggest total expenditure after America.

BAE Systems